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Megaupload Crackdown Scares FileSonic Into Changing Its Business Model

Well, that was quick. Last week, the U.S. government shut down file-sharing site Megaupload, arresting and charging the site’s operators with a massive criminal conspiracy to commit and enable piracy. The New York Times said the crackdown “sent shivers down the spines” of other online storage sites, such as Dropbox, Mediafire, and Rapidshare, since their models, like Megaupload’s, could also allow users to share pirated material. While RapidShare is unconcerned, at least one file-sharing site was scared straight out of its business model. As of Friday, FileSonic was “the world’s best file-sharing site”:

Filesonic's logo, as of last week.

No more. Over the weekend, the site, based out of the UK and Hong Kong, disabled its sharing function, so that users can only “upload and retrieve files that you have uploaded personally.” Its tagline now identifies it only as “the unlimited storage company.”

Filesonic removes functionality from its site, to avoid Megaupload's fate

“The goal of the Megaupload indictment is to push and prod other companies to take copyright infringement more seriously,” law professor Orin S. Kerr told the NYT. Even though FileSonic did have software in place to help identify (and remove) copyrighted material, rather than trying to continue to crack down on users who are sharing files that infringe copyright, FileSonic is just going to get out of the business of file sharing all together — even though it is a legitimate business model.

FileSonic users can’t be too happy to have one of the main features of the site taken away. But the company must be less worried about its breach of contract with existing users than it is about the possibility of getting the Megaupload treatment, i.e., arrest, seizure of its property, and a criminal indictment.

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Ummm… “End the Fed” refers to the Federal Reserve Bank, not the federal government….

In fact, most time you see references to “The Fed” it is talking about the Reserve Bank specifically, not the government as a whole.

Anyway, off-topic: I’m sure you’ll be posting about it soon, but Miss Hill, it appears you were wrong- the Supremes unanimoulsy agreed that a warrant is required for GPS tracking (hallelujah!)…. I’m reading the majority opinion (Scalia) right now- it looks like he’s picking on the same point that I have- the actual attaching of a tracker is a violation of your property.

this sucks but filesonic really did have a GRIP of infringing content on it…regardless I personally hated both filesonic, megaupload, AND most of all hotfile…I used to have alot of my stuff on FS, but then their service went down to crap…then switched to hotfile, who’s servers crashed & lost ALL my files…then megaupload which omg i can’t believe what happened.